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Thailand’s Energy Absolute to open battery and energy storage system (ESS) production facility as it bets on green vehicles
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Thailand’s Energy Absolute to open battery and energy storage system (ESS) production facility as it bets on green vehicles

SET-listed Energy Absolute Plc (EA), a renewable energy developer and operator, will officially open its battery and energy storage system (ESS) production facility on 12 December 2021 as part of its plan to become a leader in electric vehicle (EV) manufacturing.

EA’s lithium-ion battery production factory in Chachoengsao has passed a trial run, following a delay caused by lockdown measures to contain the spread of Covid-19.

The 6-billion-baht facility is designed to have a production capacity of 1 gigawatt-hour a year and is aimed at serving its EV business, notably electric bus assembly, said Vasu Klomkliang, EA’s senior vice-president for strategy development and investment planning.

The annual capacity will increase to 4GWh as Thailand is expected to gradually shift from oil-powered car manufacturing to EV production, he said.

The company earlier received orders to assemble 500 buses and has already delivered 100 of them to buyers.

Delivery of the remaining buses is scheduled for early next year.

Mr Vasu said the new battery factory, operated by the company’s subsidiary Amita Technology (Thailand) Co, will serve its new EV assembly factory, expected to start commercial operations in the first quarter of next year.

EA has hired companies to assemble the 100 buses while the new plant was under construction.

The company saw an opportunity in the electric bus business as many buses are ageing and the government is promoting EVs as part of efforts to fight climate change.

EA is developing a battery-run truck and expects to roll it out in the first half of next year.

The company is operating a commercial service of electric boats, with a fleet of 40 boats serving commuters along the Chao Phraya River in Bangkok.

In the long term, EA plans to produce stationary batteries for renewable power plants, many of which are facing the intermittency of energy sources such as the sun and wind.

“The ESS will be a help and become a game changer in the power generation industry,” said Mr Vasu.

The firm expects its revenue to grow by 20% this year from 17.2 billion baht in 2020. From January to September this year, its revenue rose by 16% year-on-year to 14.82 billion baht.

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Mercedes-Benz has announced the start of battery pack production for plug-in electric cars in Bangkok in Thailand, which was promised in 2018.

Through an investment of more than €100 million ($111 million), the German manufacturer, together with local partners Thonburi Automotive Assembly Plant (TAAP) and Thonburi Energy Storage Systems (TESM), expanded the plant and added a battery pack facility.

The PHEV packs will be used among others for the Mercedes-Benz C-Class, E-Class, S-Class, GLC and GLC Coupé, which are locally assembled. According to the press release, especially the C- and E-Class, are in particular demand in Thailand. 

A similar move was done recently by BMW, which makes us wonder whether there are some special incentives to launch battery pack production or it is just the same strategy.

Daimler has decided to build an entire network of localized battery module/pack plants. Through an investment of more than €1 billion ($1.1 billion), the company will put on-line 9 battery pack plants at 7 sites on three continents:

"The first factory in Kamenz is in series operation. The second factory in Kamenz (Germany), the battery factory at the Beijing site (China) and in Bangkok (Thailand) started series production in 2019. The battery factories in Stuttgart-Untertürkheim (Germany), Tuscaloosa (USA) and Jawor (Poland) will start at the beginning of the next decade.

The local production of batteries is an important success factor in Mercedes-Benz Cars electric offensive and the crucial building block for handling the global demand for electric vehicles flexibly and efficiently. The battery is the heart of all electrified drives. The complex battery systems from Mercedes-Benz are assembled and tested in the international battery factories. Mercedes-Benz buys the battery cells flexibly on the world market and secures access to the latest technologies on the market."

"We have been successfully producing Mercedes-Benz vehicles for the local market at our Thai plant for more than 40 years. With the start of production of our battery factory in Bangkok, we are taking another important step in the expansion of our global battery production network at Mercedes-Benz Cars with nine factories worldwide. The local production of batteries enables us to make the best possible use of the potential for e-mobility in Thailand. As in the case of vehicle manufacturing, we have optimized all processes in terms of efficiency, flexibility and sustainability in the battery factory. We show, how sustainable products can be produced sustainably", said Jörg Burzer, member of the board of Management of Mercedes-Benz AG, Production and Supply Chain Management.

The plug-in hybrid models of Mercedes-Benz Sedans, especially the C- and E-Class, are in particular demand in Thailand. "Our location is well prepared for the future of mobility and can react even more flexibly to developments in the Southeast Asian market. Above all this strategic course-setting was made possible by the long-standing, trusting cooperation with our local partners. This has laid the foundation for further expanding our commitment and adding additional electrified vehicles to our portfolio", said Roland Folger, President and CEO Mercedes-Benz (Thailand) Limited.

Digital and sustainable battery production

The battery systems manufactured in the new battery factory, are used among others for the current Mercedes-Benz C-Class, E-Class, S-Class as well as for the Mercedes-Benz GLC and GLC Coupé. The high variety of product variants of the local market require very flexible and efficient production and facility concepts. Central assembly stations were set up in the same way as in the battery factory in Kamenz and were further developed for site-specific requirements. In this way, all battery types can be manufactured in the new line for all current and future plug-in hybrids.

The battery factory in Bangkok meets the high Mercedes-Benz standards in terms of ergonomics, industrial safety and digitalization. For example, a new benchmark has been implemented for process assurance: The excellent product quality is generated by a quality assurance system that monitors all production processes online along the value creation. In addition the plant has its own assessment and testing centre.

In order to prepare employees in the best possible way for their new, demanding tasks, they were intensively trained. Mercedes-Benz Cars benefits from the experience gained from its international production network. "The expertise in our global network is an advantage that we can use here in Thailand. We are dealing with highly complex future-oriented technologies in battery production. It makes me very proud to see the enthusiasm and dedication with which our employees approach their new tasks. Without this strong team, the project would not have been feasible in this short time and according to the high Mercedes-Benz standards," says Andreas Lettner, Chief Executive Officer & Head of Operations Mercedes-Benz Manufacturing Thailand.

About the battery production network

Daimler is investing more than one billion euros in a global battery production network within the global production network of Mercedes-Benz Cars. In total, the battery production network consists of nine factories at seven locations on three continents. The first factory in Kamenz is in series operation. The second factory in Kamenz (Germany), the battery factory at the Beijing site (China) and in Bangkok (Thailand) started series production in 2019. The battery factories in Stuttgart-Untertürkheim (Germany), Tuscaloosa (USA) and Jawor (Poland) will start at the beginning of the next decade.

About Bangkok manufacturing energy storage

About Bangkok manufacturing energy storage

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